TUPELO, Miss. (AP) – Hancock Fabrics has filed a motion with the U.S. Bankruptcy Court of Delaware, asking it to approve an agreement in which the Pension Benefit Guaranty Corporation takes over its under-funded pension plan.
Hancock, which filed for Chapter 11 bankruptcy protection in February and later moved to liquidate, essentially went out of business on July 31 after the rest of its stores closed.
When it filed for Chapter 11 on Feb. 2, Hancock listed debt of $182 million and assets of $151.4 million. Its pension plan was under-funded by $41.6 million.
Pension Benefit Guaranty Corporation spokesman Mark Hopkins tells the Northeast Mississippi Daily Journal (http://bit.ly/2diKM6u) PBGC guarantees private defined-benefit pensions much like the FDIC insures money deposited in banks up to a certain amount.
Hopkins says the PBGC guaranty does not include 401(k) or other retirement plans.
Information from: Northeast Mississippi Daily Journal, http://djournal.com